BoJ’s Ueda: Underlying inflation is still somewhat below 2%

Dhwani Mehta FXStreet

Bank of Japan (BoJ) Governor Kazuo Ueda said on Thursday that the “underlying inflation is still somewhat below 2%.”

Additional takeaways

Expect underlying inflation to gradually accelerate as economy continues to recover.

The BoJ is gradually shrinking size of its balance sheet, like to spend time scrutinising what eventual, ideal size will be taking into account overseas examples.

Size of Japan’s monetary base, balance sheet somewhat too big now, which is why we are slowing bond buying.

Expect Japan’s real wages, consumption to gradually improve as rise in import costs seen moderating, wage growth expected to stay strong.

Market reaction

USD/JPY was last seen trading 0.03% higher on the day at 148.20.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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